The explosion happened in the early evening when traffic is normally heavy.

The last assault on a foreign compound was in late November when a Taliban-claimed vehicle bomb exploded outside the compound of British security firm G4S, killing at least 10 people.

Five G4S employees were among the dead.

That was followed by a suicide and gun attack on a government compound in Kabul on December 24 that killed at least 43 people, making it one of the deadliest assaults on the city last year.

The latest bombing comes as US peace envoy Zalmay Khalilzad visits the region for meetings aimed at bringing an end to the 17-year war in Afghanistan, which by some estimates was the world's deadliest conflict zone in 2018.